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Tag: anti-competitive

  • Microsoft Says It Will Make Changes Over Anti-Competitive Cloud Concerns

    Microsoft Says It Will Make Changes Over Anti-Competitive Cloud Concerns

    Microsoft President Brad Smith has acknowledged concerns and vowed changes in response to complaints the tech giant is unfairly using its position to lock out cloud rivals.

    Microsoft has a long history of anti-competitive behavior, ultimately leading to its landmark anti-trust trial in 2001. Much of the company’s anti-competitive behavior came from it using its position in one market to gain an advantage in another. For example, the company used its Windows dominance to push Internet Explorer over Netscape. The company is now being accused of reverting to old habits, charging more for using Windows and Office with rival cloud platforms.

    If the allegations are true, it would be a departure from the company’s playbook in recent years. Under CEO Satya Nadella, the company has become far less concerned over forcing customers to use its platforms, instead focusing on making its software work on almost every major platform. To then turn around and penalize companies that use those other platforms seems antithetical to that philosophy.

    According to Bloomberg, company President Brad Smith has acknowledged the concerns, saying there is at least some cause for them.

    “There definitely are some valid concerns,” he said. “It’s very important for us to learn more and then make some changes.”

    Microsoft has so far managed to avoid the anti-trust scrutiny Amazon, Apple, Google, and Meta are currently under. The company would do well to voluntarily address these concerns before it finds itself in the crosshairs.

  • Slack Files Complaint Against Microsoft With EU

    Slack Files Complaint Against Microsoft With EU

    Slack has filed a complaint against Microsoft with the EU, claiming the company is engaging in anti-competitive practices with Teams.

    Slack and Teams have been locked in a bitter battle over the corporate messaging market. While Microsoft’s app has far surpassed Slack, in terms of users, Slack has continued to rack up some impressive contracts. In particular, Slack has become a popular choice among companies that compete with Microsoft and don’t want to rely on one of their competitors for their communication.

    Now Slack has upped the ante even more, filing a complaint with the EU. In particular, Slack is claiming that Microsoft is unfairly tying Teams to Office.

    “We’re confident that we win on the merits of our product, but we can’t ignore illegal behavior that deprives customers of access to the tools and solutions they want,” said Jonathan Prince, Vice President of Communications and Policy at Slack. “Slack threatens Microsoft’s hold on business email, the cornerstone of Office, which means Slack threatens Microsoft’s lock on enterprise software.”

    Microsoft should be concerned by this complaint, as it is similar to the complaint that was successfully used in Microsoft’s antitrust case in 2001. To make matters worse for the company, the EU is currently scrutinizing numerous US companies for anti-competitive practices. All of this means that Microsoft may find itself in an unfavorable climate should Slack’s complaint move forward.